Many local jurisdictions assess an annual tax on tangible personal property. The lessor, as owner of the equipment, pays this tax to the appropriate taxing authority. (Our lease rate does not include this tax.) We pass this tax on to you on an annual basis. Again, these taxes change periodically and are not included in the calculation for the base monthly payment. We may bill you our estimate of the taxes and reconcile your account when the actual tax figures are received from the applicable jurisdiction. The billed amount may also include an annual property tax administration fee of up to $25. When applicable by law, taxes may be applied to this fee.
- If the equipment location is in California and you have a $1.00 purchase option lease, your property tax jurisdiction will bill you directly.
- If the equipment is in Tennessee, your property tax jurisdiction will bill you directly.
- If your local property tax jurisdiction in California or Tennessee bills you directly, you will not be billed an estimate from PEAC Solutions.
- If the equipment is located in the following states, no property tax will be assessed and you can disregard this notice: Delaware, Iowa, New Jersey, Ohio, Hawaii, Minnesota, New York, Pennsylvania, Illinois, New Hampshire, Kansas, North Dakota and South Dakota.
We ask that if you have other business equipment to report to your local jurisdiction that you please list the PEAC Solutions lease information in the “leased from” section of the property tax report. This will help avoid double assessment of property tax.
If you believe that you are exempt from property tax, please understand that the tax assessment applies to PEAC Solutions and your exemption will generally not apply to the property taxes assessed to PEAC Solutions.